Problema Solution

Tori invested $8,000 in money market funds. Part was invested at 5% simple interest, and the rest was invested at 7% simple interest. At the end of 1 year, Tori had earned $496 in interest. How much did she invest in each fund?

Answer provided by our tutors

let $x invested in 5% fund and $y in 7% 

x*5%+y*7%=496

x+y=8000

x*5%+(8000-x)7%=496

0.05x + 560 -0.07x=496

64=0.02x

x=3200

y=4800